AIRWORTHINESS DIRECTIVE OR AD an airworthiness directive issued by the FAA
 and/or the AAC.

ANNUAL EXPIRY DATE each annual anniversary date of the Delivery
 Date which occurs before (or on) the Final
 Expiry Date.

ANNUAL SUPPLEMENTAL RENT ADJUSTMENT has the meaning specified in Schedule 7.

APPRAISAL PROCEDURE the following procedure for determining the
 "fair market rental value" of the Aircraft
 or any part thereof pursuant to Clause
 13.2(c)(ii)(b): (a) Lessor shall select an
 internationally recognized independent
 aircraft appraiser experienced in appraising
 aircraft of the make and model of the
 Aircraft in its sole and absolute discretion
 who shall make a determination of "fair
 market rental value" of the Aircraft or part
 thereof in accordance with the terms hereof
 and customary industry practices; and (b)
 the fees and expenses of the appraiser shall
 be paid by Lessee. "Fair market rental
 value" shall mean the value determined by an
 appraisal completed on an "as-is" and
 "where-is" basis.

APPROVED MAINTENANCE PROGRAM OR an Air Authority approved maintenance
LESSEE'S APPROVED MAINTENANCE program for the Aircraft based on the

 8


PROGRAM Maintenance Planning Document, as amended by
 Lessee based on Lessee's operating
 experience, and encompassing scheduled
 maintenance (including block maintenance),
 condition-monitored maintenance, and/or
 on-condition maintenance of Airframe,
 Engines and Parts, including servicing,
 testing, preventive maintenance, repairs,
 structural inspections, system checks,
 overhauls, approved modifications, mandatory
 service bulletins, engineering orders,
 airworthiness directives, corrosion control,
 inspections and treatments.